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President Trump Announces Record Tax Refund Season and New Tax Benefits Amid IRS Challenges

President Trump has announced the largest tax refund season in U.S. history, driven by the implementation of the Working Families Tax Cuts Act, which was opposed by Democrats. The legislation is expected to increase average refunds by over $1,000, with many Americans seeing nearly $4,000 in total tax savings in 2026. Key provisions include no tax on tips, overtime, or Social Security benefits, along with deductions for auto loan interest on American-made vehicles. The IRS projects that most refunds will be deposited by early March, with electronic filers receiving refunds within 21 days, although delays may occur due to reduced staffing. The IRS has seen a significant decrease in employees—from about 102,000 in 2025 to roughly 74,000—raising concerns about processing times and service quality. Taxpayers are advised to check their refund status via online tools like 'Where’s My Refund?' and plan accordingly. The new tax laws also expand eligibility for credits such as the Earned Income Tax Credit and Child Tax Credit, which could further boost refunds. Despite the positive outlook, taxpayers are cautioned not to rely on specific refund dates due to ongoing staffing issues and potential processing delays.

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